Possibility of Full Compensation for Damages: A Comparative Assessment under the Principles of International Commercial Contracts, Vienna Convention on Contracts for the International Sale of Goods

Compensation for damages arising from a breach of contractual obligations should place the injured party in the position he would have been in had the contract not been breached. By accepting the idea of full compensation, the UNIDROIT Principles of International Commercial Contracts as well as the Convention on Contracts for the International Sale of Goods (1980), judicial precedents, and international arbitration awards have recognised this approach. Despite the recognition of the principle of compensation, this theory is subject to controversy in Iranian law, particularly in the event of damages caused by the loss of anticipatory benefits. From justice and economic efficiency perspectives and for the sake of adapting Iranian commercial rules with ones reflected in international trade instruments, and for considering the affirmative religious jurisprudential principles, it is recommended that effective steps should be taken towards the removal of all existing legal barriers in Iranian law.